The Surat Bench of Income Tax Appellate Tribunal ( ITAT ) remanded the matter concerning cash deposits made by the assessee during demonetization for fresh assessment considering the notice was issued only via email. Kishan Valjibhai Kheni (assessee) filed his income tax return declaring a total income of Rs. 3,15,123. The assessing officer (AO) found that the assessee deposited Rs. 62,10,000 during demonetization. The assessing officer observed that it was unexplained and unaccounted cash and added Rs. 65,25,123 to the total income of the assessee. Know When to Say No to Cash Transactions, Click Here Aggrieved by the order, the assessee filed an appeal before the Commissioner of Income Tax (appeals)(CIT[A]). Despite several notices being issued, the assessee failed to appear before CIT(A). The CIT(A) passed an ex-parte order and confirmed additions made by the assessing officer.

The assessee filed an appeal before ITAT. The counsel for the assessee argued that the CIT(A) failed to consider the facts and stated that the ex parte order passed by the CIT(A) was violative of the principles of natural justice. The counsel also submitted that the notices were sent to the email of the assessee despite it was not opted by the assessee. The counsel argued that non-compliance was not intentional.  Know When to Say No to Cash Transactions, Click Here The counsel of the revenue argued that the assessee was negligent during the appeal proceedings before CIT(A) and therefore submitted to dismiss the appeal.

The two-member bench comprising Pawan Singh (Judicial Member) and Bijayananda Pruseth (Accountant Member) observed that the assessee was negligent and non-cooperative before the lower authorities. However, the tribunal observed that an opportunity can be given in the view of principles of natural justice. Therefore, the tribunal set aside the exparte order and ordered a fresh assessment. The tribunal ordered the assessee to pay Rs. 10,000 to Gujarat High Court Legal Aid Authority. The appeal was allowed for statistical purposes.